INDONESIA: Olam eyes Indonesia for growth
Olam said Indonesia is a country that it will consider for expansion
Singapore-based agribusiness group Olam International has confirmed that it will consider Indonesia for future expansion.
The confirmation comes amid reports yesterday (20 September) that Olam, along with Malaysia's Guan Chong and Singapore's ADM Cocoa are expected to build cocoa factories at a cost of US$100m each in Indonesia.
According to the Indonesian Cacao Association, Olam and ADM Cocoa plan to build their factories with a processing capacity of 50,000 tons of cacao beans a year in Sulawesi.
However, while Olam said the firm had made no announcement on the construction of a factory in the country, a spokesperson told just-food: "As for cocoa processing in Indonesia, since our intention is to invest in cocoa processing selectively in locations that provide a competitive advantage, it remains one of the various options for our consideration for future expansion."
ADM Cocoa also said that while it has not made any announcements regarding a cocoa factory in Indonesia it had recently opened a third cocoa bean warehouse in the country and would continue to seek opportunities to grow its cocoa operations there.
Guan Chong could not be reached for immediate comment.
Olam last month announced plans to build a cocoa processing facility in Cote d'Ivoire.
The firm plans to build a greenfield cocoa processing in Abidjan, the country's capital. The $43.5m investment includes a primary processing and warehousing facility in San Pedro.
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